S&P 500 Price Forecast – Stock markets break out on Thursday

The stock markets rallied significantly during the trading session on Thursday, as the reaction to the United States and China announcing more topics was brutal and we started to see a massive “risk on” trade almost immediately.
Christopher Lewis
S&P 500 daily chart, September 06, 2019

The S&P 500 broke higher during the trading session on Thursday, clearing the 2950 handle, reaching towards the 2980 level after that. Above there, the 3000 level is also a target at a large, round, psychologically significant figure. At this point, short-term pullbacks are probably going to be buying opportunities, as the market certainly looks as if it is ready to return to the “everything is awesome” attitude. That being said, we are somewhat whistling past the graveyard but in the short term it certainly looks as if the market favors the upside.

S&P 500 Video 06.09.19

Adding more fuel to the volatility fire of course is the fact that the jobs number come out on Friday, and with that being the case there will be a lot of volatility. Traders are starting to focus on whether or not there are going to be 25 or 50 basis points cut from the interest rate in America. The deeper the cut, the higher the market will go. After all, the volatility has been horrific but as long as the Americans and the Chinese seem to be “game on”, that should send this market to the upside. If we can break the 3050 handle, then we could go much higher, making a fresh, new high and continuing the big grind to the upside. To the downside, one would have to think that the blue 200 day EMA would offer a bit of support near the 2850 handle. Below there we also have the 2800 level, so clearly there are much more in the way of support levels underneath and there are resistance levels above.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US